International Cooperation on

Green Bond

Claire Liu

Shanghai Stock Exchange

Green Bond Issuance Landscape

Source: CBI,HSBC 2018

National/Regional Green Bond Guidelines

Source: CBI,HSBC 2018

Exchange Traded Green Bonds

2015 2016 2017 2018

London Stock

Exchange

Launch

date2015.7

TypeGreen

bond

Luxembourg Stock

Exchange

Launch

date2016.9

Type

Luxembourg

Green

Exchange

Mexico Stock

Exchange

Launch

date2016.8

TypeGreen

bonds

Shanghai Stock

Exchange

Launch

date2016.3

TypeGreen

bonds

Oslo Stock Exchange

Launch

date2015.1

TypeGreen

bonds

Stockholm Stock

Exchange

Launch

date2015.6

TypeSustainability

Bonds

Borsa Italiana

Launch

date2017.3

Type

Green

and

Social

Bonds

Taipei Stock

Exchange

Launch

date2017.5

TypeGreen

bonds

Johannesburg Stock

Exchange

Launch

date2017.10

TypeGreen

bonds

Japan Exchange Group

Launch

date2018.1

Type

Green and

Social

Bonds

Exchanges Sustainability Initiatives

No. of exchanges-related sustainability initiatives have been rising

SSE Green Finance Action Plan

Regulators Green Finance Guidelines

WFE Sustainability Principles

Launched at the 58th WFE Annual Meeting in Athens on

4th October 2018.

A formal declaration by the WFE and its membership to

take on a leadership role in promoting the sustainable finance

agenda.

Demonstrate that WFE members - while recognizing they

are at different stages of market development with different

opportunities and constraints - will seek to promote the

Principles progressively in accordance with their

circumstances and priorities.

Initiated and promoted by WFE Chairman Wu Qing;

Shanghai Stock Exchange, along with B3, Bolsa de Santiago,

Borsa Istanbul, BSE Ltd, Luxembourg Exchange worked as

subgroup of WFE’s SWG in drafting this document.

Principle 1:Exchanges will work to educate participants in the exchange ecosystem about the importance of sustainability issues

Principle 2:Exchanges will promote the enhanced availability of investor-relevant, decision-useful ESG information

Principle 3:Exchanges will actively engage with stakeholders to advance the sustainable finance agenda

Principle 5: Exchanges will establish effective internal governance and operational processes and policies to support their sustainability efforts

Principle 4:Exchanges will provide markets and products that support the scaling-up of sustainable finance and reorientation of financial flows

WFE Sustainability Principles

Principle 4

Creating frameworks for the listing of green, social and sustainability bonds

The development of sustainability indices

Supporting qualified green and/or social enterprises in obtaining financing via

IPO and secondary offerings

Working with third parties to develop sustainability ratings

Principle 4: Exchanges will provide markets and products that support the scaling-up of

sustainable finance and reorientation of financial flows

SSE Vision and Action Plan

SSE Vision and Action Plan

for Supporting Green

Development and Promoting

Green Finance

(2018-2020）

Objective

and

PrinciplesDevelopment

BackgroundAction Plan

1

2

3

Green finance is necessary to implement

the green development concept

Green finance has become a common

concept in global economic development

and financial cooperation

The Exchange has actively participated

in green finance practices

Action Plan

1. Providing more support and services for the listing of green companies

2. Enhancing environmental information disclosures by listed companies

1. Developing green bonds further

2. Developing green asset-backed securities

3. Lowering the financing costs of green bonds and green asset-backed securities

4. Reinforcing first-line supervision and risk management

1. Developing green securities indices and relevant products

2. Guiding investors to invest into the green financial products listed on the Exchange

3. Enhancing the presentation, study and analysis of information on green financial products

Devoting great efforts to develop green bonds

Making more efforts to promote green investment

1. Actively participating in the green finance development initiatives of relevant international

organizations

2. Intensifying bilateral communication and cooperation with foreign exchanges on green

finance

3. Promoting the opening-up of China’s green securities market

Enabling the stock market to support green development

Strengthening research and publicity on green finance

1. Conducting in-depth research and statistics on green finance

2. Strengthening publicity and training on green finance

Enhancing international cooperation on green finance

SSE Vision and Action Plan

SSE Green Corporate Bonds Pilot Program

By the end of September 2018, 49 green corporate bonds and 15 green ABS have been issued successfully.

0

100

200

300

400

500

600

700

800

0

10

20

30

40

50

60

70

17.3 17.6 17.9 17.12 18.3 18.6 18.9

SSE Green Corporate Bonds/ABS

Total number Total value(100 million Yuan)

State-owned68%

Private22%

Wholly Foreign Owned

1%

Joint Venture

5%

Overseas4%

Types of Corporations

项目亮点

Issuer

Listing Type Public Issue Private Placement Public Issue

Issued Amount* RMB 0.7 Billion RMB 1.3 Billion RMB 1.8 Billion

(1+0.4+0.4)

Tenor 8 years (5+3) 5 years (3+2) 5 years (3+2)

Coupon Rate 3.25% 5.2% 4.55%,4.58%,4.6%

Credit Rating^ AAA/AAA AAA/- AAA/AAA

Sector Water Affairs Water Affairs Water Affairs

*by the end of September 2018

^Credit rating for both the issuer and the bond

Cross-border Issuance of Green Bond

Cross-border Issuance of Green Bond

Issuer China Development Bank (CDB)

Issuer’s Rating A1 / A+ / A+ （Moody's / S&P / Fitch）

Listing Type Public Issue

Currency USD、EUR

Tenor5 years（USD）

4 years（EUR）

Green

Certification

Aligned with Green Bond Principles(2017) ;

Certified by CBI ;

Green Bond Assessment by EY.

Amount,

Coupon Rate

USD 500 Million, 2.75%

EUR 1Billion, 0.375%

Bond Connect

A new mutual market access scheme that allows investors from Mainland China and overseas to trade in each

other's bond markets through connection between the related Mainland and Hong Kong financial infrastructure

institutions.

Northbound Trading commenced on 3 July 2017, allowing overseas investors from Hong Kong and other regions

to invest in the China interbank bond market (CIBM) . Southbound Trading will be explored at a later stage.

Source: Hong Kong Stock Exchange

Northbound Operating Model

Bond Connect

By the end of September 2018, a total of 445 international institutional investors had joined Bond Connect for

access to Chinese interbank bond market.

Investors come from diverse jurisdictions across the globe, such as Hong Kong SAR (50%), US, Singapore

Trading volume of Bond Connect was RMB 64.8 billion in September 2018.

Issuer ADBC CDB ADBC ADBC

Tender Date 2017.11.16 2017.12.22 2018.04.27 2018.06.28

Amount RMB 3 Billion RMB 2 Billion RMB 4 Billion RMB 3 Billion

Coupon Rate 4.48% 4.68% 3.8766% 3.86%

Tenor 2 years 3 years 2 years 2 years

Bond Connect Green Bond Issuance

Green Bond Channel

Information channel bridging the information gap between Chinese issuers and international investors.

All bonds displayed on the Chinese domestic Green Bond Channel are registered on LuxSE Securities Official

List (SOL) where admission to trading is not a prerequisite.

Trading via existing channels.

Green Bond Channel

On June 8, 2018, Green Bond Channel

officially launched.

18 green corporate bonds publicly issued

and listed on the SSE (RMB23.1 billion) are

included on launch date.

On September 12, 2018, SSE, LuxSE and

Bank of China (BOC) signed the MOU on

the Green Bond Channel. BOC will serve as

primary partner to facilitate capital flow on

green bonds.

Increased

transparency of bond

information via free

access to security

cards

Increased investor

base

Comprehensive

information in

English available to

offshore investors

Enhanced visibility

of securities

Better connectivity

among China and

international

investors

SSE Green Bond Indices

SSE Green Corporate Bond Index SSE Green Bond Index

SSE Green Corporate Bond Index SSE Green Bond Index

In May 2017, SSE and China Securities Index Company issued SSE green corporate bond index and SSE

green bond index.

Since June 19, 2017, SSE green index series has been displayed on SSE and Luxembourg Stock Exchange .

1.Approved by CSRC or NDRC

2.Green corporate bonds and green enterprise

bonds issued publicly and traded in SSE

1.Comply with CSRC’s Guidance and SSE’s pilot notice

2.Approved by CSRC

3.Green corporate bonds issued publicly and traded in SSE